Gold eases on firmer dollar ahead of Fed decision

Gold prices edged lower on Tuesday as the US dollar stayed near a one-week peak, with traders awaiting the Federal Reserve’s policy announcement. Business Recorder reported spot bullion at $4,007.29 per ounce, down 0.2% at 0321 GMT, while December US futures fell 0.5% to $4,019.70.

The metal had lost 4% last week, its steepest weekly decline in about four months, and briefly traded below $4,000 for the first time since mid-July. Although Fed policymakers are expected to keep rates unchanged this week, inflation concerns have kept expectations of a later increase alive: markets priced an 11% chance of a hike this week and 82% for December. Investors are also watching Wednesday’s Fed decision and Thursday’s Personal Consumption Expenditures figures; higher rates can weigh on gold because it does not generate income.